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Revenue department clarifies ad agency commission norms

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Broadcasters can relax somewhat now that the Revenue Department has ruled that commission paid to advertising agencies will not be included in the value of taxable service in respect of broadcasting services.

Broadcasting companies, slapped with a five per cent service tax in July this year, had been unsure about whether the commission to ad agencies was to be included in the taxable service.

The companies had made a representation to the finance ministry claiming that a service tax on the commission amount, if levied on both the ad agency and the broadcasters, would be tantamount to double taxation. The revenue department has now clarified that service tax is separately leviable on the commission or discounts received by the ad agencies for placing the advertisements in print or electronic media.

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Usually, the gross amount paid by broadcasting agencies is indicated in the invoices raised by them on the ad agency. The commission or discount, which is usually around 15 per cent of the gross amount given to the ad agency, is deducted and the net amount payable by the ad agency to the broadcasting agency is indicated.

The finance ministry, which examined the industry’s representations, has clarified that the value of taxable service is the amount received by the broadcaster for providing the service.

According to Ramesh Narayan, president of the Advertising Agencies Association of India, service tax had been imposed on ad agencies three years ago, an imposition which amounted to 0.75 per cent of their revenues. Agencies were not happy about the charge, which he claims is a cumbersome levy and was passed on through advertisers.

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The new notification, which concerns the broadcasting companies, clearly stipulates that the 15 per cent commission due to agencies will not be included in the value of taxable service, he says.

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Sony PAL to air Sankat Mochan Hanuman from May 4 at 9 PM

Mythological series brings Lord Hanuman’s tale of devotion and courage back to TV

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MUMBAI: Sony PAL is set to bring back the timeless mythological series Sankat Mochan Hanuman, with its premiere scheduled for May 4 at 9 PM. The show revisits the legendary journey of Lord Hanuman, offering viewers a chance to reconnect with one of Indian mythology’s most revered figures.

Centred on themes of devotion, courage and righteousness, the series traces Hanuman’s unwavering loyalty to Lord Ram and his fearless stand against evil. With its mix of dramatic storytelling and visually rich sequences, the show aims to deliver both entertainment and spiritual resonance, appealing to audiences across age groups.

The narrative unfolds as a larger-than-life saga, positioning Hanuman as the ultimate protector and a symbol of strength and selfless service. His journey, rooted in faith and duty, continues to strike a chord with viewers, making the series as relevant today as ever.

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The cast features Gagan Malik as Lord Ram, Debalina Chatterjee as Sita, Nirbhay Wadhwa in the titular role, and Saurav Gurjar as Raavan. Their performances bring depth and authenticity to characters deeply embedded in Indian cultural memory.

With its return to television, the show is positioned as more than just a rerun. It taps into a renewed appetite for mythological storytelling, blending nostalgia with timeless values.

As audiences increasingly seek content that resonates beyond entertainment, ‘Sankat Mochan Hanuman’ offers a familiar yet powerful narrative, reminding viewers that stories of faith and courage never really go out of style.

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